Smartphones replace bank branches for Millennials

The majority of Millennial Brits now use their mobiles to keep their financial affairs in order, according to research launched by Visa. Visa’s third Digital Payments study asked over 42,000 Europeans, including more than 2,000 UK respondents, about their attitudes to alternative forms of payment and money management, and the results showed that seven in 10 Millennials prefer their mobile device to the high street bank.

The findings show that 69% of British people between the ages of 18 to 34 said they have used a mobile banking app, with more than half (53%) noting that they do so regularly. By comparison, 38% of total respondents across the country regularly conduct their banking via an app. The results reflect both increased investment in digital offerings from traditional providers, coupled with a growing number of app-first ‘challenger banks’ entering the market.

UK consumers are also making use of the increased ability to quickly and securely make payments on their phone. Over a third (34%) note they have now made a peer-to-peer (P2P) digital payment via a mobile device, with Millennials again leading the way as three fifths (59%) have sent mobile money to a family or friend.

With more mobile devices coming equipped with fingerprint scanners, Millennials also demonstrate an increased appetite for using biometric technology when authenticating their identity. Altogether, 35% of 18 to 34 year olds would prefer to make P2P payments using biometrics, compared with a national average of 30%; while 37% would like to use this technology in conjunction with a banking app, compared to 31% of total respondents.

Jonathan Vaux, executive director of innovation partnerships at Visa, said: “Mobile technology has revolutionised the retail banking industry. Until relatively recently, simple transactions such as transferring money between accounts meant visiting a bank branch in person. We are now seeing banks embrace the flexibility offered by apps to reduce the pain points for customers and allowing them to stay on top of their finances while on the move. In essence, anyone with a smartphone or tablet is now able to take their bank branch with them wherever they go.

“London is one of the fintech centres of the world. By offering both security and convenience via mobile without compromising on customer service financial institutions are capturing the imaginations of younger British consumers. As a payments provider we are working with partners of all sizes to ensure we offer best-in-class solutions to meet customer needs and remove the friction from mobile money management,” he concluded.

About Smart Chimps

Smart Chimps is the creation of freelance editor, writer and media trainer, Heather McLean. Heather has been involved in telecoms journalism since 2001, specialising in mobile since 2002. Find out more